Uranium spot price   Spot price figures supplied by Numerco

Five Key Points

    • Australia is a Tier 1 mining jurisdiction, providing diversification and low supply risk for uranium fuel buyers
    • Located in South Australia, the only Australian state that has producing uranium mines with bi-partisan government support
    • Port Adelaide has established uranium shipping routes for international markets
    • Idled restart mine in care & maintenance, can quickly respond to market conditions and produce within 12 months
    • Annual nameplate production of 2.45Mlb U308
    • 71.6Mlb U308 JORC Resource
    • Additional 190Mlb U308 exploration target. 2,600km2 underexplored uranium province
    • AIC (All-In Costs) US$31.86/lb U308
    • AISC (All-In-Sustaining Costs) US$25.62/lb U308
    • Cash Costs US18.46/lb U308
    • Low CAPEX outlay of only US$80m
    • Strategic Inventory held of 1.25Mlb U308
    • 1 of only 4 fully permitted uranium mines in Australia (3 of which located in South Australia)
    • Uranium Export Permit of 3.3Mlbs U308 per annum
    • Native Title agreements are all in place
    • Operational permits and licences in place, lower risk on timing of start up
    • MD / CEO / Strategic Adviser ex-Husab Mine (world's largest uranium producer at nameplate)
    • Director Wyatt Buck ex-GM of Cameco’s McArthur River Uranium Mine and Key Lake Mill, ex-GM of Paladin’s Langer Heinrich Mine
    • Director Bryn Jones ex-COO of Laramide, and operations at Heathgate
    • Board and management experienced in constructing & operating uranium mines
    • Enviable long term supply relationships with utilities world wide

Advantages of South Australian Jurisdiction

South Australia is a major exporter of uranium oxide to the world and currently attracts many companies (including global majors) exploring, developing and mining uranium in the state.

The South Australian Government has made it clear that it openly and actively supports exploration for uranium as it forms a significant part of South Australia’s mineral resource. Despite having 23% of the world’s uranium resources, South Australia only produces around 10% of the world’s uranium, indicating that there is significant potential for long term production, expansion and demonstrated geology with high potential for further discoveries.

Uranium Market

Current market conditions are not supportive of Honeymoon recommencing production, particularly with the current sustained low uranium market prices.

Ultimately the investment decision to recommence production at Honeymoon will depend on the anticipated market price of uranium and ensuring the project’s positive NPV over Life of Mine satisfy all stakeholders. This critical aspect underpins the motivation for pursuing a staged development approach as the Company technically de-risks the Honeymoon Project to ensure all assumptions surrounding the deposit and process plant are fully evaluated prior to recommencing production, and thereby ensuring Honeymoon can operate in the lowest cost quartile of competitive global producers.

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